The Hindu Business Line : Lanco firms up Rs 15,000-cr capex for power

Power plans
To lay special thrust on power projects and infrastructure development
The company explores mining option for coal plants
No decision as yet on public offer

Hyderabad , June 9

The Lanco Group has firmed up plans for a capital expenditure of Rs 15,000 crore for its power projects in the country, following two wins.

These include a 74 per cent stake in the 1,015-MW Nagarjuna Power Plant at Mangalore and the 1,000-MW coal-based power plant at Anpara in Uttar Pradesh.

The Group is restructuring its operations and plans to lay special thrust on power projects and infrastructure development. The Chairman of Lanco Group, Mr L. Madhusudhan Rao, said the overall funding would be through 80:20 debt-equity components. Of this, about Rs 2,500 crore would come in through equity.

Thrust on power

Speaking to Business Line, Mr Rao said the Group had four business streams — manufacturing, power, construction and IT. "We have gradually exited manufacturing by divesting stake to the Kolkata-based Electrosteel. The restructure covers both the holding company and about 14 special purpose vehicles that we have created."

"Now, post-restructure, the thrust would be on the power sector — both generation and trading, and construction. By 2010, we would have more than 4,000-4,500 MW of power generation capacity," he said.

"Lanco currently manages a 368-MW plant at Kondapalli, near Vijayawada; the 120-MW Aban Power, and few smaller projects. A coal-based plant of 1,200 MW is being implemented at Amarkantak and hydel plants of 800 MW capacity in three States in the North. Following recent developments, we have added about 2,015 MW to projects under implementation," he said.

"While focussing on coal plants and hydel projects, we now plan to tap the mining option for coal plants. We are in the process of bidding for coal blocks within the country to have captive mining; we are also in talks for coal mining option overseas through partners," he said. Asked if they would consider a public offer, Mr Rao said, "No decision has been taken on this as yet."